Entrusted with a task to suggest reform measures for the higher education sector, Niti Aayog has said centrally funded educational institutions that are performing well will get more financial and operational autonomy.

However, the government will keep a close watch on "not- so-better" higher educational institutions and if their ranking in terms of academic performance does not improve over a period of time then the financial support to them will be reviewed, Niti Aayog member V K Saraswat said.

"The focus of higher education is now on quality...The Aayog has said that the evaluation of educational institutes will be based on outcomes such as what level of quality a education institute has achieved, how many PhD scholars a particular institute has produced," Saraswat said.

Saraswat, a former DRDO chief, also said the government plans to introduce a three-tier autonomy mechanism for educational institutes.

"Better performing educational institutes will get more operational autonomy and more financial support. Suppose if they want to open new research centres, then the government will provide financial support," he said.

The move is aimed at providing adequate autonomy to those institutes that are performing well so that they can go for high level research, which at times may not show immediate result, the Aayog member said.

"The not so better performing educational institutes will be watched out but will continue to get support," Saraswat said, adding that those "ranked poor would remain under the government control and if they don't improve after some time then financial support to them will be reviewed".